This week's Top 10 Mortgage Strategies Articles:
Here are this week's top articles The Liberal Democratic Party calls for an emergency mortgage summit amid turmoil in the bond market. MPs to debate rent caps and advances in renters' rights bill. Learn more about these developments and more below. 
Santander expects four base rate cuts in 2025
Santander expects the Bank of England to cut interest rates four times in 2025, despite continued inflation and volatile bond markets. Rising bond yields and swap rates will weigh on mortgage costs, while inflation is expected to rise slightly to 2.7%, above the central bank's 2% target.
Market concerns about global tariffs and the UK government's borrowing plans pushed up UK gold yields and weakened the pound. Many economists currently expect only two rate cuts this year, but Santander maintains his forecast for four rate cuts and a benchmark interest rate of 3.75% by the end of 2025. However, uncertainty in the economic outlook may prompt lenders to react to market fluctuations and increase short-term mortgage rates.
HSBC debuts product for high-income earners, lowers cash register rate
HSBC will introduce new fixed-rate mortgages for high earners from Monday, cutting interest rates on some housing products. The bank's new two-year Premier Exclusive product costs £999 and is available to UK and international customers, as well as discounted booking fees on the five-year Premier Exclusive product.
Interest rates on five-year mortgages will also be reduced at various loan-to-value (LTV) stages. HSBC's cut stands out despite rising volatility in swap rates and bond markets, with experts saying lenders could struggle to keep rates low if swap rates continue to rise. I am doing it.
Liberal Democratic Party calls for emergency mortgage summit amid bond market turmoil
The Liberal Democrats have called on Finance Minister Rachel Reeves to hold an emergency summit with banks to prevent mortgage prices from skyrocketing as borrowing costs rise. This follows a fall in the pound and a rise in gold yields due to global tariff concerns and government spending plans.
Some lenders have already raised interest rates, with Treasury spokeswoman Daisy Cooper warning homeowners are facing unaffordable costs. Meanwhile, Chancellor Keir Starmer insists the government will stick to fiscal rules despite market concerns.
House price range revealed on London Underground map
According to Alexander Hall, the most expensive place to buy a home near a London Underground station is near High Street Kensington, with an average mortgage cost of £9,890 per month, while the lowest is near Heathrow Airport, at £1,316. That's what it means.
The Waterloo & City and Circle lines have the highest average mortgage costs, while the DLR and Elizabeth lines are the most affordable. The District line has the widest price difference, from £9,890 at High Street Kensington to £1,642 at Upney.
This analysis highlights that moving further along metro lines can significantly reduce capital mortgage costs.
MPs to debate rent caps and advances in renters' rights bill
MPs are expected to debate amendments to the Tenants' Bill of Rights, which include rent caps and prepayment restrictions, to be reintroduced to parliament. The bill seeks to ban section 21 evictions, limit rent increases to once a year and apply decent housing standards to privately rented housing.
Proposed changes include capping rent increases at the lower of inflation or wage increases and prohibiting landlords from paying months' worth of rent in advance. Supporters say the bill requires stronger protections for tenants, while landlords warn the regulations could reduce rental supply. The bill also introduces an ombudsman, tougher penalties for landlords, and expanded tenant rights.
Short-term interest rates fall, but 5-year interest rates rise: Moneyfacts
Despite concerns about rising Treasury yields, there was little change in mortgage rates this week. Some financial institutions, such as HSBC and First Direct, have cut some interest rates, while others, such as Virgin Money, have increased their rates.
Specialist lenders and building societies are also expected to adjust their pricing, with lower LTV loans expected to be reduced and higher LTV bands increased. Notable new deals include a two-year fix at 5.25% at 90% LTV with Yorkshire Building Society;
Further share sales reduce NatWest's public shareholding to below 9%
After selling 86 million shares, the Treasury reduced its stake in NatWest to 8.9%, continuing its plan to fully exit by 2025-26. Finance Minister Rachel Reeves halted public sales, citing it as not being cost-effective.
Government holdings have fallen by 84% since the 2008 bailout, with more than £20bn recovered. NatWest CEO Paul Thwaites expects full privatization to be completed as early as mid-2024.
Lenders seek calm in turbulent bond market to avoid soaring mortgage prices
Lenders are monitoring bond market turmoil before adjusting mortgage rates as the UK government's borrowing costs hit a 25-year high and the pound weakens. Concerns stem from potential global tariffs under US President Donald Trump and Prime Minister Rachel Reeves' £70bn spending plan.
Although gold yields have risen, market expectations for a Bank of England rate cut remain stable. Experts suggest that mortgage rates may rise gradually, but advise against panic unless bond market volatility persists.
MAB confirms two new appointments to accelerate growth
Mortgage Advice Bureau (MAB) has appointed Rachel Geddes as Strategic Partnerships Director and Felicity Barnett as Lending Operations Manager to support its growth plans.
Mr Guedes has 20 years' experience in the financial services sector, including roles at Santander and Countrywide, including 13 years at MAB and 10 years running his own brokerage firm.
Barnett has over 20 years’ experience in business growth and stakeholder relations, having worked at Nationwide, Skipton Building Society and The Mortgage Brain.
Both companies are focused on strengthening MAB's new build proposition and expanding its market share, with MAB's CEO and Distribution Director expressing confidence in their roles.
Inflation outlook: Rising cost of living increases pressure for interest rate cuts
Consumer price inflation is expected to rise to 2.7% in December due to higher food and gasoline prices, according to Deutsche Bank. Gasoline prices are expected to rise by 1.2% and food inflation is expected to rise by 3.7%. Rent price growth slowed slightly to 0.6%.
Inflation is expected to rise further in 2025 due to rising wages and rising food and energy costs, putting pressure on expectations for a Bank of England interest rate cut. The market currently expects two rate cuts in 2025, with a 64% chance of a quarter point cut in February. Hargreaves Lansdown's Sarah Coles said rising inflation could have a small impact on mortgage rates, but it is largely priced in.
